HB 

6>OI 




Class 

Book. 
Gopyiiglit}]". 



C£iF£RIGHT DEPOSIT. 



Publications of the National Bureau of 
Economic Research^ Incorporated 

NO. 3 



DISTRIBUTION OF INCOME BY STATES 
IN 1919 



DISTRIBUTION OF INCOME BY 
STATES IN 1919 



BY 



OSWALD W. KNAUTH 

OP THE STAFF OF THE NATIONAL BUREAU OP ECONOMIC RESEARCH 






NEW YORK 

HARCOURT, BRACE AND COMPANY 

1922 






COPTRIGHT, 1922, BT 
HABCOUBT, BRACE AND COMPANY, INC. 



Printed in the U. S. A. 

AUG 26 1922 

OCUfi81521 



PREFATORY NOTE 

The "Distribution of Income by States in 1919" is a by-product of 
the volumes on "Income in the United States" which have already been 
published by the Bureau. It is one of a series of studies which the Bureau 
is undertaking in connection with its main topics of research and which 
may later be collected in a formal volume. It is issued at this time in order 
to meet the special needs of many investigators concerned with the compar- 
ative capacity of the various states to bear increased taxes, to buy goods 
of various sorts, to absorb securities, etc. It also indicates the relative 
importance of agriculture in the different sections of the country. 

The present study undertakes to distribute the aggregate income of the 
American people among the States on the basis of such official data and 
other indices as are available. This distribution is based on data for 1919, 
and no single year is "typical." The small incomes received by farmers in 
Montana after the bad weather of 1919 certainly do not represent average 
conditions and probably less striking anomalies exist among the figures for 
other States. However, the distribution must rest upon the State data 
gathered by the Census and those data are to be had only for 1919. 

The reader who is looking for results, and is not interested in the method, 
will find these results presented in tabular form on pages 25 to 30. 

Like all publications of the National Bureau of Economic Research, this 
paper has been submitted for criticism to the Bureau's directors and ap- 
proved by them. Hearty thanks are due to members of the Board for 
their help in improving what remains at best a rough set of approximations. 

The Directors of the Bureau are as follows: 

Directors-at-large : 

T. S. Adams, Adviser to the U. S. Treasury Department. 

John R. Commons, Professor of PoHtical Economy, University of Wisconsin. 

John P. Frey, Editor of the International Molders' Journal. 

Edwin F. Gay, President of the New York Evening Post. 

Harry W. Laidler, Secretary of the League for Industrial Democracy. 

Elwood Mead, Professor of Rural Institutions, University of California. 

Wesley C. Mitchell, Professor of Economics, Columbia University. 

J. E. Sterrett, Member of the firm of Price, Waterhouse & Company. 

N. I. Stone, Labor Manager, Hickey-Freeman Company. 

Allyn A. Young, Professor of Economics, Harvard University. 

Directors-by- Appointment, nominated by organizations: 
Hugh Frayne, The American Federation of Labor. 
David Friday, The American Economic Association. 
W. R. Ingalis, American Engineering Council. 
J. M. Larkin, National Personnel Association. 
W. H. Nichols, Jr., The National Industrial Conference Board. 
George E. Roberts, The American Bankers' Association. 
Malcolm C. Rorty, The American Statistical Association. 
A. W. Shaw, The Periodical Publishers' Association. 
Gray Silver, The American Federation of Farm Bureaus. 



THE DISTRIBUTION OF INCOME 
BY STATES 

in 1919 

I. INTRODUCTION 

In a previous publication of this Bureau, the income of the United States 
in 1919 was estimated at 66.7 bilhon dollars.^ This estimate was based on 
the incomes received by gainfully employed persons, and was divided into 
the following categories — 

INCOME OF THE UNITED STATES, 1919 

Billion 
dollars 
Income of persons receiving over $2,000 per year (excluding farmers and farm 

laborers) $18.90 

Income of persons receiving under $2,000 per year (excluding farmers and farm 

laborers) 32 . 65 

Income of Farm Laborers 2 . 30 

Income of Farmers 10 . 85 

Corporate Surplus 2 . 00 

Total $66.70 ^ 

Many of the items on which these estimates for the country rest are 
available also by States. The Bureau of the Census has pubhshed in its 
advance bulletins the number of gainfully employed persons on January 1, 
1920 and most of the details concerning farmers. The Bureau of Internal 
Revenue has published by States the amount of income reported under the 
income-tax law. Where direct data of this kind are lacking, it is possible 
to construct index numbers which can be used to distribute parts of the 
total National Income among the 48 States. Such State estimates, of 
course, cannot have the same accuracy as the larger estimate of the Na- 
tional Income, if for no other reason than that a small error is more impor- 
tant in a small total than it is in a large one. 

For many purposes, it is quite as important to know the proportions of 
income received by States as it is to know the total for the country. Cer- 

1 Income in the United States, Volume II, chap. 26. Harcourt, Brace & Company. 

2 The amount distributed in the summary table below is 66.2 bilhon dollars; the 
difference of one-half billion dollars being the amount paid to soldiers which it waa 
impossible to distribute among states in 1919. 

1 



2 THE DISTRIBUTION OF INCOME BY STATES 

tain details of this State distribution are particularly interesting: for exam- 
ple, the variations of per-capita income, the varying proportions of farm- 
ers' income to the total income, and the distribution of farmers' income. 

II. THE METHOD 

A. The Income of Persons Receiving Over $2,000 per Year. (Excluding 

Farmers) 

The income of persons receiving over $2,000 per year (excluding farmers) 
has been treated in the following manner: The amount shown for each 
State in the official Statistics of Income, 1919, has been hsted. This amount 
requires adjustment for the present purpose in three ways: first, it includes 
a part, but only a part, of the incomes in the ranges between $1,000 and 
$2,000; second, it includes income due to agriculture; and third, it does not 
include income which should have been, but was not, reported. In order 
to make these adjustments, (1) the amounts reported in the income-range 
$1,000-$2,000 have been subtracted from the total of each state; (2) the 
amount reported as due to agriculture, $1,211 million, has been apportioned 
according to the percentage of farmers' incomes in each state and the ratio 
which the average farmers' incomes of each state are to the average farm- 
ers' incomes of the whole country; and (3) the resulting income in each 
state as left by these two adjustments has been raised to bring the sum for 
all the States to the estimated national total of $17,500 million. (See In- 
come in the United States, volume II, Chapter 22.) The last adjustment 
appears to be the least satisfactory ; it involves the tacit assumption that 
the evasion of income taxes by failure to report and under-reporting is 
uniform in all states — an assumption which may or may not be valid. ^ 

Next the non-taxable income must be apportioned. The income from 
homes owned by the individuals occupying them, amounting to 700 million 
dollars, has been distributed among the States according to the percentage 
of the total income-tax payers resident in each State. The remaining tax- 
exempt income, mostly interest on exempted bonds, amounted to 710 
million dollars in 1919. This sum has been apportioned according to the 
total income of persons having $25,000 or more per year in the several 
A I States. The reason for this is that the exempt income appears to be highly 
^ I concentrated in the higher range of incomes. 

1 "I am enclosing my approval of the publication of the section on the Distribution of 
Income by States. I want to place myself on record, however, as believing that the 
facts are not in accordance with the presumption that there is an equal amount of failure 
to report and of under-reporting in every state. In my opinion there is evidence in the 
income tax statistics themselves that there are very large differences in the degree of 
accuracy of these figures in different states. Nevertheless, the question is so difficult, 
and is in particular so full of political dynamite that I do not see that the Bureau could 
possibly adopt any other course than the one it has followed." — Allyn A. Young. 



THE METHOD 



I 

PQ 



tf 



O £ 

w ^ 2 o 

J^ 2 03 ro 

pq Ph r-( Tj 



H 

O 
I— ( 

P5 

O 

o 

o 
o 

m 











d 












c 






H 




1 






oi 




(U 




a^^l 




(L 


t) 


^ 


X 


fl 


+^ 






o 






-ti 






0. 




« 


fi 


q; 


G 


OJ 


H 


o 


? 

X 


G 


J3 

e 


Cl 


' ' 


o 


H 




«« 


T! 


i 


bn 


(1) 




fl 


-t-i 






3 


P! 


tH 


3 


o 


T3 




a 


<1 


^ 


^H 






V 




tn 


3 










■^ 


6 


'Ti- 


a 




11 




O 


2 

a 


rt 


(4 




"^ i 


T! 






OJ 


m 


O 


03 


i4 


a 


.^ 




8 


+3 

CO 


03 


a 


w 






t3 


u 




o 


>S 1 


li] 


oo 








lyi 


rt 


^ 






(B 






+J 






=s 






+3 






C/J 





(M lO "-I t^ r-4 ^ 

O t>. ■* CO Tt< (M 

I-H T-< i-H CO 



cocoooooot>- 

OCOOCO(NfO 

M< CO CO 1— I rH lO 



oooooo 

LQ CO lO 1— I »0 C5 



t^-*oeo<oco 

CO CO CO (M CO 00 

co_oq^02_t>._^o_tD_ 
io 00 a^ 1x5' CO t>^ 

C5 CO ^ CO Oi 



e s^ 



"S 



■ OiCCO-ICO 

I CO I-H 00 1^ 

I O 00C2 ^ 



I CO lO 05 00 
I CO 'ti I-H CO 



lOOO 



(NCOOCO 
CD ■* lO CI 

tN. lO 1— I I-H 



■rH OS I— I rJH C<1 CO 

-* OOO COCOO 

i>^cq_oo__cq_^__cq_ 

05 50CO-* (NO 
05i-l(N 



3^ a -. 

CQ c3 3 

mi-H o c3 4) OJ 

•3 & S 2 o a 



I>.i-I05 
U0»OO 

i>rco'"ar 

(N CO lO 
t>^QOt^ 

co" T-T 



OOO'* 
OiCO-* 
05 00 1-H 



ooo 
t^ to t^ 

COTt<t^ 



00 CO C3 
iq_c0_^0_ 
o^cTio" 

rJH__t>.cO^ 

co" i-T 



~) 05 >-H lO 

S co'co'co" 

e coo to 

■^ co" i-T 



t-H ooco 
OOOOrtH 



O OiOO 
O IC lO 
0_MC«5^ 

oi"oo'~cf 
a>ooo 

Ot^Tt< 



>.'a 

^ ^ 03 
t-i ai > 

& & g 

O) OJ m 



t^05 05C<) (N 

1-1 cooiiooo 
OCOCOOIN 



t^COCOCO 05 

t>-co o 00 lo 
Tt<__t>^oo_^(M_^oq_ 
■^"(©"co'io'io" 

CO lOlM 



ooooo 
CO 00-* i>o 

TjH_O_-*_00_^00__ 

o~i>"io~co"co' 

Tjl ,-H O (N 1-1 



C5 ""iti lOCO 
00ai(M(M 
Oi_c0_^i-H_0_ 

\c"o'~co'"co' 

■*(MOO 
COOCD(N 



feq 



) CO O ■* 'H 

Pc^Ti-Tco't-^ 

)1-H t^ Tfl CO 

)C0CO iO(N 



CO OilCCOlO 

1-H t--. lO CO l>- 

(N oo 050 



O00C<J t^05 
O ^ CO O 00 
»0_0^lM_Oi_C<_ 

O lO CO t>. t^ 

00CO-* »0(N 



03 



fl.a 

;,.2 gi£! 8 



C5 l>(N CO i-H OS CO 
1-1 r-H Tfl t>. O CO >-l 

oo_05_oo 05 lo 05 r- 
oo'"m<'"co'"qo'"-*'~-*"(n'~ 

C^ ■* TJ* Tti o 1-1 1-1 



05 ^ O CO 1-1 (N 1^ 
CO Oi CO CO T}< o CO 

00 -* O (M lO T-i CO 



ooooooo 
Tti i> lo t^ Tt< 00 >— I 
(N^iO^-^^^iq^O^Tt^^^O,^ 

co'"j>"co''co"iO~T-ro'~ 



ICO (Ml^O t^Oi 
I lO CO CO (M »0 CD 
■_00 ■^ I— I 05 CO CO 

rc<rco'~io'~oo''o'~cr 

' (M 1-1 •* ©I O 05 
li*-* (Nr-I 



I t}< 1— I lo TjH t- CO 

I CO 05 CO I— I 05 o 
1 CO 00 t^ C<) CO 00 






(M O C5iO O 
00 t^ TJH 00 00 t^ 
CO CO tH 



(N 00 lO lO (M 1-1 CO 
CO rH 00 lO to CO CD 
CO (M •<* 1— I >0 00 Oi 



00 (M CO O CO 00 (N 
CO 00 t^ C5 CO (N t^ 

»o to CO 00 1^ lo r^ 

rjr,M~t^''(>^'cr(M''io'" 
>— I Oi O CO 1— 1 ■* CO 
W*-* i-l(M(N 



o3 



a 03 



O o 

.. T^^ o3 

a '^ to 2 

S 03 m *i 73 fc S 



THE DISTRIBUTION OF INCOME BY STATES 









c3 




-ti 




O 




H 




>^^ 




03 "S 0^ 




Si a o 








42 ><: fl 








O 




-►^ 03 




a « 




s s a 




S fi o 




x-ex 

ncoi 
m h 




<^"^ o 




H .i: 




T3 i bC 




Qj oj a 




just 
und 
orti 




-O tH o. 


1 


<o gi 


e 


Oi 










<U o 


o 


-^ 5 


V 


-o.S 




(U 


tH 


tl's 

o §3 


9 






H 






©"OO Q) 




tl S3 a 




Estim 
farm 
inco 






V « 




^ >o 




"K og 




O-lSfN 








tf 2^ 




a> 




-tj 




03 








02 



SO l^ ■>*< CO ■* 05 00 I> CO (NOlOfO OiOcOiO 

O O t-H i-H ,-( 05 00 rH CO iO-*<MO (NCOt^-* 

ci~t--."oo'"t^"ro~oro~co~id' iv^o^oTo" c<rcD"io~co~ 

CO CO ■>* C<> -* CO (M 05 O OOOi-HOS 1-I0505-* 

CO 1— I C<) 1— I i-t I-H .— ( I-H C<l "-I I-H T-H 1-H T-H lO 



t-l-^l^OSOOfOOSOiO 

o»— icoco'*'— ti— ii-Hio 

O^O^CO^^iO^fN^CO^-^^O^i-H^ 

•<j<~co"-^'"-*~jo*"»ocC'*"c^" 

I-H 




OOOOt^O 
■*iCOOOO 
iq^co •<** i-H__ 

co'io'c^Tco"" 




0(N-* OS 
05 »0 00 lO 

i>^a>_co_i-(__ 
i-H"t>rio~co'' 

I-H 




m 












ooooooooo 

l^COO-^iOOOt^cO 

I-H 




oooo 

^ 10 05 lO 

00 CO CO 1-H 

t^CD^iO-CO" 




OOOO 

00 CO »o r- 

Tj^^Ol^O^T-t^ 

■^^ccco 




^ 












c<icoi>aicocoo5t^oo 

COCOt^fOr-HOOCOCOi-H 

-*_CD__0_(N_05^(N^i-H_^(N_05_ 
(D 0^1:0 coco a^ CO -^ CO 
iCOfOi-iOOlMr-iOOCTi 

CO I-H C<l 1-H I-H 1-H I-H 




196,164 

174,141 

111,243 

84,333 


T« 


105,959 
182,048 
182,042 
504,616 




«^ 










1 




lOTt^lOlOCOO-^lOC^I 

C^-^IMrHt^OCOlCi-H 

oocot^coi><r>OT}H(M 
o~ ^'~c<riM'"o"«:r(M"co''ar 

'OlMIMOKN'-iOOOO 

CO I-H I-H I-H I-H 1-H T-H 


1 

1 
eg 


176,916 

157,054 

100,328 

76,058 


1 


95,562 
164,185 
164,179 
455,101 


s 

■l 

s 
s 



00i-H(MiO-<*<f00>O 
COiOOit^COOOOOO 
fOt-iO(M»0(Nt^-<a< 



OOOi-Hi-H(Mi-HCO<N 

cooo5cot>ooooi^ 

CO CO »« t^ IN t>- ■* 



OOOOOOOO 
OOOOCOOCDOlN 
CO 00 CO lO TjH CO_00 1-H 

lo^c^TiN't^rT-rc^rcfi-r 



O^i-H-*(M(M«0 00 
I^IOINIOOCOOOO 
OCDCOOlOOl^iOIN 



OIXN 

cji I-H CO 

Tf^O 
TJH^C^TCO" 

CO lo oi 

(N I-H 00 



05 1CC0 


^ 


COI>iO 


^ 


CD 00 CO 


o 






•<l<COI:^ 


o 


IN 


1-H 




r- 




m 


OOO 


^ 




O^ 


05 100 


CO 






•*cO»Ci 


t^ 


r-H CO 


C5 




CO 




^ 



»-i(NcO 

TtHCOO 

00l>t^ 

TtTT-To" 
TtH-^CO 

(N I-H 00 



CO lO I-H lO CO t>. O tH ScOlO-* 
iNt^Tt^iOiOl^iCOO -J? ^(N05 

o 05_co__-*^iN^a5_io^o>_ .§ 00 oo__i-H__ 
00 cfoTc^r-^'co^io^i-H" Q o'r^^cT 

l> •* CO T}H (N •* Tj< ,-H ,^(N(N-# 
'-I tH (Nf-it^ 



coo 00 »0 CO ■* ic 1-H rvi IM I-H T}< 00 

COOO 1-H C< O •* Tt< (N •*< 03 CO t^ (N 

OCO^^ iq^t>._iq^I>^iN_cO^ co_kC_co__0_ 

T^io co"co~co'"i>"c<rc<f ■rfcOCO^ 

I-H COINCO 1-H I-H 1-H I-H 



^ 



I "0 CO IN 
I 05 >-H 1-H 



CO ■* -.# CO (N ■* 00 (N t^JJOrft 

CO (N CO CO ^ t^ (N CO i-HCOCO 

t^OCOiCcO(NO OOiOOO 

i-H'"(N'l>riN»0»0"c<r CO^oTcn" 



00'#>OCOi-HCOOOOCO 
lOiNINCOOOOOOO 

t--_co__i>.__oo_^io_'-H__oo__i~-_oq_ 

iN"cr(M'"io~Tiro'~ario"i-r 

»OININOIN'OIN0505 

CO I-H C^ I-H 1-H I-H 1-H 



OOiOINCO 
Oi-HOOO 
CD^C0_t^_O_^ 

i-ro~eo"iN" 

Ot^T-H Oi 



OOOlNCO 

COCOI>Tj< 

t^^i-H^^CO^IN^^ 

cocoaTa^ 

i-H>i-i o 

I-H 1-H N IQ 



OSOiiCOOiOi-HOOCO 
00CT)t^i-HCOiON.Tt< 
iO_CO_CO__i-H__l>^cO_l>_0_^ 

oo'"-*'i-H"o"co''aro"T)r 
t>.iO'*coiN->a*»ciT-i 



COOOO 
COOXN 

co_co_o^ 
•^ CO CO 

(N I-H 00 



QJ-O o 

is ^ 

g gj o 



03. g 

Is o 






o3 

a 

•J 

g 

o3 
^.So3 

I So 



O tC C ID 



cs g H 



3*3 03 

3.^ a 



bi) /^ 

*i o a 2'=^ 9 -• s 
o =«.>>o «-E-2i 5 



a 
o 

.Bat: 

(^ tH 03 



THE METHOD 5 

B. Income of Persons Receiving under $2,000 per year. (Excluding 

Farmers) 

In apportioning the total sum of wages received by persons having less 
than $2,000 per year it is necessary to allow for: (1) differences in the gen- 
eral level of wages in different States, and (2) differences in the relative 
numbers of persons following high-paid and low-paid occupations. A sam- 
ple table is appended to illustrate the method used. 

The number of persons gainfully employed on January 1st in each of 
the eight main groups under which the Census classifies the occupation 
returns is reported by States in the Census of 1920. From these data and 
from the estimated number of persons having incomes over $2,000, it is 
possible to approximate the number of persons in each occupation group 
in each State having incomes less than $2,000, To this end, the number of 
persons in each occupation group as reported by the Census has been 
adjusted in the ratio appHed to that occupation group in the estimate for 
the whole country. These reducing ratios are computed from Tables 23E, 
F, and G of Income in the United States, volume II, chapter 23. From 
this point forward, the general method of estimating the total wages in 
each State is the same as that used for the United States. This procedure 
consists in multiplying the number of persons in each occupation group by 
the average wages for the corresponding group, and adding together the 
products in order to find the total wages in each state. 

While this computation gives the estimated total payments for personal 
services, it does not show the total income from all sources. In Chapter 23 
of Income in the United States, it was estimated that in the case of per- 
sons receiving less than $2,000 per year, income from other sources was 
about 9.5 per cent of the income from wages. This percentage was there- 
fore added to wages in order to arrive at the total income in each State of 
persons receiving less than $2,000. The results are shown in the summary 
table. 

The following form was used for estimating the total income of wage and 
salary earners in each State. A complete transcription of the original 
data used in making the estimates would be extremely cumbersome and 
would serve no useful purpose. The original tables, however, are open to 
the inspection of anyone who is interested. 



THE DISTRIBUTION OF INCOME BY STATES 



So 
Sm 

^P5 
^^ 

C-i rv, 

teQ 
S5 

pi] 

el 
P5<J 

^O 

5§ 

9 So I 

Ow 
OS 

00 
WO 
H^ 

w-* 
So 
eg 

^> 

^o 

Hp£J 






Of Cl g 3 

sS !» ^, *:< 
t, Qj Qj bc 



^-S-2 g « m 



^ > bD43 
I S ^ S § 
05 t< 



O 01 OO O J. 






Ol 



2 a o.>S fl S3 



-S o o ^ 

a £ ri CI 



I>COO 

1-H 00.-I 

00 GO CO 

l>.CD 



ococc 

00"QO"i-r 
OOCO-ti 
lO IC lO 

VrrGo"-* 



0-* 
CO-* 

0201 
O5_oq_ 

ot>- 



fO'*00'-HOOI>OCO 

'-H(Noo05(M-<i<cco 



co»oooo505ecio 
00000000 



OOOiOfOOOO 
OOiO-^dOOO 
COt-i(Mr-(00(MO5(M 



TjtTfiOCOlNOCDTtf 
■*T-Ht^C<>CCCDOOO 

05 10 00 00 CO CO l> 
I© coco 1-H Tji CO 



CO-^-^iOCOOilMt-- 



Tt<t^coiOT)<i-Hini*i 

<©_O_I>_'-*_C0__(N^ !--.__ C5_ 
l>"io"-*"c<ro"<N'~o'"ic'~ 

10 O 05 o 01 1^ to 

I> rJH iCi t-H (M •* "3 









QJ S w 
'/I V • -- 



II ill 2 il 



■i-5 


11 


(Tl 




:S 


•^^ 


T3 


!r> 


C 


^ 


J 


-(J 









1*1 


S 
fe 


03 

a 


-tJ 


a 







CO 


u 


«1 


.a 






</2 


^ 


-w 





<» 


r-> 






s: 




;:d 


»o 



.s;^ 



Oe^ 



THE METHOD 7 

As said, to estimate the annual wages of persons in each occupation 
group, indices were found for each State, and applied to the average annual 
wages for each occupation group in the whole country. In this way, the 
different wage levels obtaining in different States, as well as the different 
occupations of the gainfully employed in different States were given their 
due weight. 

The sources from which the varying income from wages imputed to 
different States were drawn are as follows : — 

(1) Mining. The Census of Mines and Quarries, 1919, gives the total 
wages paid and the number of miners paid in each State. 

(2) Manufacturing. The Census of 1919 gives the number employed 
in manufacturing, and also the total wages paid in each State. 

(3) Transportation. The reports of the Interstate Conmaerce Com- 
mission show the wages paid for similar work in three divisions of 
the country — Eastern, Southern, and Western. These, together 
with similar data furnished by the American Telephone and 
Telegraph Company, have been used as a basis for adjusting 
wage rates by States. The number of persons employed is 
estimated from the Census of Occupations, 1920. 

(5) Public Service. This is a small group, for which no systematic 
wage data exist. The relative wages have been apportioned in 
general conformity with the other groups. The estimates of 
numbers employed are based on the Census of Occupations. 

(6) The relative wages and salaries of persons listed under Profes- 
sional Service in different States have been apportioned accord- 
ing to an index constructed from relative rates of salaried em- 
ployees in manufacturing and mining. Again, the Census of 
Occupations gives a basis for estimating the numbers of persons. 

(7) No systematic data exist in the field of Domestic and Personal 
Service. Owing to this lack, an index based on manufacturing 
wages was used to determine the relative rates in each State; and 
the number of persons employed was estimated from the Census 
of Occupations. 

(8) Clerical. The relative wages of clerks in manufacturing and 
transportation have been used as an index for computing the 
rate of wages in different States. The number of persons em- 
ployed is estimated from the Census of Occupations. 

These data make possible a reasonably accurate estimate of the differ- 
ences in wage levels that exist among the 48 States. 



8 THE DISTRIBUTION OF INCOME BY STATES 

C. Income of Farm Laborers. 

Farm laborers form a problem by themselves. Their wages, as shown 
in the Year Book of the Department of Agriculture, vary widely from one 
State to another. The rates used here are average monthly wages without 
board, and thus furnish material only for an index of variations. The 
average wage of farm laborers in 1919 was estimated at $518, and the total 
wages at $2,302 million. This total for the entire country was apportioned 
among the States according to the index of variations made by taking the 
products of the number of farm laborers in each State times the average 
monthly wages. These results appear in the summary table. 

D. Income of Farmers. 

The distribution of the total income of farmers in 1919 among the various 
states is the most difficult and compUcated of the various subdivisions with 
which we have to deal. Without an actual census of farmers' incomes, the 
extraordinary diversity of production and costs presents problems which 
can only be solved in rough approximations. In addition the reports of 
the Department of Agriculture contain duplications which may be elim- 
inated only in a broad way. These reports do not differentiate between 
the crops which are sold as crops and those which are sold or used to feed 
animals. 

While such corrections may be made for the country as a whole with a 
tolerable degree of accuracy, errors are apt to loom large in the subdivi- 
sions by States. Since it has not been possible to divide all the items of 
product or of expenses among the States, the larger ones only have been 
chosen and used as an index of the proportions in which the total farmers' 
income of $10,850 million was divided. As a matter of fact the total re- 
sulting from the use of this index came very near the national total, being 
$10,978 million; but the closeness of these figures is largely a matter of 
chance, for among the products of each State no account has been taken 
of the direct income received by the farmers, such as milk, butter, vegeta- 
bles, home rent, etc. In the expenses no account has been taken of seed, 
horses sold, feed purchased, etc. These items, however, are of relatively 
minor importance and do not affect the vahdity of the index to any marked 
degree. The items comprising the index are by all odds the largest affecting 
farmers' income. And they are also the items concerning whose distribu- 
tion by States we have the most accurate information. Most of them are 
reported in the Census of 1920 and the others, for the most part, rest on 
Census data. 

The method of attack has been to take as a basis for the farmers' income 
of each State the crops raised. These are definitely recorded for each 
State, and form, for the country as a whole, about nine-tenths of the value 



THE METHOD 9 

product of farmers. To the value of these crops must be added the value 
produced by (1) animals slaughtered and (2) animal products over and 
above the value of those crops that are fed to animals.^ 

The value added by animals slaughtered has been based on a large num- 
ber of reports of the costs of producing beef and hogs. These indicate that 
the ratio of feed costs to other costs is about four to one. On the assump- 
tion that total costs are roughly equal to total value, the indication is that 
about twenty per cent of the value of animals slaughtered is an addition 
to the value of the crops that have been fed to these animals. 

While this rule seems to hold for most of the country, an exception 
must be made in the range states (Texas, Oklahoma, Montana, Idaho, 
Colorado, Wyoming, New Mexico, Arizona, Utah, and Nevada) in which 
the value added by animals above the crops they are fed is estimated at 
fifty per cent of their total value. This change in ratio is due to the fact 
that crops (range grass) on which these cattle are largely fed is not counted 
by the Census in its value of total crops. Of course, the same remark holds 
true concerning all animals which are out at pasture; but it is "more" 
true of the range States. That there is a distinct difference between these 
states and the rest of the country is indicated by the fact that in all other 
states there are 54,624,057 hogs and 50,822,210 cattle; whereas in the 
range states there are 4,722,352 hogs and 15,830,349 cattle. In the rest 
of the country, therefore, hogs and cattle are roughly equal. In the range 
states there are more than three times as many cattle as hogs. In addition, 
there is Httle fattening of cattle in the range States. 

Having deteraiined on the proportion of the value of animals slaughtered 
which may be considered a net addition to the value of crops which they 
are fed, it remains to determine the value of animals slaughtered. This 

^ Some hypothetical examples will explain this procedure. 

(a) If all farmers in state A raised feed worth say, a million dollars; and sold it to 
farmers in state B, who raised no feed at all, but only fattened cattle, the record might 
stand 

State A produces crops worth $1,000,000 

State B produces cattle of gross value 1,250,000 

State B produces cattle of net value (20%) 250,000 

Total value of agriculture in both states (A + B) 1,250,000 

The million dollars worth of feed bought by the farmers of State B from those of 
State A is thus counted out. 

(b) If one set of farmers in one state sell feed to another set of farmers of the same 
state, who raise only cattle, then the record stands 

Valueof crops raised $1,000,000 

Value of cattle slaughtered 1,250,000 

Net value of cattle slaughtered 250,000 

Income of Farmers. . . . , 1,250,000 

(c) If all farmers raise crops and feed them to their own animals, then the record 
stands 

Value of crops raised $1,000,000 

Value of animals slaughtered 1,250,000 

Net value of animals slaughtered 250,000 

Income of Farmers 1,250,000 



10 



THE DISTRIBUTION OF INCOME BY STATES 



figure is not included in the Census; but the Bureau of Animal Industry 
reports the total production of meat; and the average values of the different 
kinds of animals slaughtered are shown in the Department of Agriculture 
Year Book for 1920. From these data the total value of animals slaugh- 
tered in the United States may be estimated as follows: 



TABLE 3 
TOTAL VALUE OF ANIMALS SLAUGHTERED IN 1919 





U.S. 
inspected 


Other 


Total 

number 

slaughtered 


Average 
value 


Total value 

(thousand 

dollars) 


Cattle 


10,089,984 

3,969,019 

12,691,117 

87,380 

41,811,830 


3,545,100 

5,072,000 

3,573,700 

160,100 

24,868,500 


13,635,084 

9,041,019 

16,264,817 

247,480 

66,680,330 


$44.22 
25.00 
11.63 
10.00 
22.00 


$ 602,943 


Calves 


226,025 


Sheeps and Lambs 

Goats 


189,160 
2,475 


Swine 


1,466,967 






Total 


$2,487,570 2 







Twenty per cent of the value of animals slaughtered, $2,487,570,000, is 
$497,514,000, and when a correction is made for the fifty per cent which is 
attributed to the value of animals in the range States, this total becomes 
$652,952,000. This sum therefore is counted a net addition to the value of 
the total crops produced. In order to divide this among the various States 
the total value of beef cattle, sheep, goats, and swine was taken for each 
State and the $652,952,000, was divided in accordance with this index. 
The assumption underlying this division is that the value of animals 
slaughtered in the States varies in the same ratio as the value of the animals 
in those States; an assumption which appears to be in general accord with 
the facts. 

The values of animal products are reported by States in the Census; but, 
as in dealing with meat, it is necessary to determine what proportion of 
this value may be considered a net addition to the crops that are used to 
produce it. On this point the evidence is less clear than in the case of meat 
production. A study of the cost reports of the Bureau of Farm Manage- 
ment indicates that about sixty per cent of the costs may be attributed to 
feed and about forty per cent to other items. This proportion is broadly 
corroborated by Mr. H. A. Wallace, Editor of Wallace's Magazine and by 
Mr. F. A. Peck, formerly of the Bureau of Crop Estimates and now with 

^ Supplied through the courtesy of the Bureau of Animal Industry. 

2 The total value of animals sold and slaughtered on farms is given in an advance 
bulletin of the Census at $3,511,201.21. This figure, however, contains considerable 
duplication, since many animals are sold twice; it is only in the range States that there 
is little re-seUing and in these States the values reported by the Census agree fairly 
•closely with those used. 



THE METHOD 11 

the University of Minnesota. If we accept forty per cent as the net addi- 
tion and apply it to the total value of animal products of $2,667,072,273/ 
then the net addition is found to be $1,067,000,000. Since the total value 
of animal products is reported by States, the amoimt to be added on this 
account can be computed directly. 

A broad check upon the total value added by "Animals Slaughtered" 
and "Animal Products" may be had by comparing the results obtained by 
the preceding method on the one hand and the net value as found by sub- 
tracting the crops fed to animals from the total value product of those 
animals on the other hand. These crops are mainly hay, corn, barley and 
oats, and the percentage of each of these crops sold is reported in the Cen- 
sus. From the total amounts fed must further be subtracted for our 
present purposes the value of crops fed to horses and mules on the farms. 
The amounts fed to horses and mules are estimated at two thirds the Army 
ration — 12 lbs. oats and 14 lbs. hay for horses, and 9 lbs. oats and 14 lbs. 
hay for mules. 

This comparison works out as follows: 

(1) Value added by animals slaughtered $ 652,952,000 

Value added by animal products 1,066,828,909 

Total value added $1,719,780,909 

(2) Total value of animals slaughtered and animal 

products $5,154,643,044 

Less value of crops fed to live stock 

(total value of crops fed $5,698,995,210 

less value fed to horses 2,069,597,962 

$3,629,397,248 

$1,525,245,796 

The two methods of estimating the value product added by animals and 
animal products over and above the crops fed to animals differ by about 
11 per cent — not a wide difference as such matters go — and indicate that 
the percentages used in estimating the net addition to animals slaughtered 
and animal products are tolerably reUable. 

1 Summary of the Census of Agriculture, 1919 and 1920. Table 26, page 15. 



12 



THE DISTRIBUTION OF INCOME BY STATES 



CO 

H 
< 

« 

IS 
O 
O 



^ 02 

O 

o 

I— I 

H 

C3 
CQ 
I— ( 

H 



< 
Eh 



> 
P 
Q 

2; 



rt 



CO 1— I 

050 



o o> 

•* CO 



005 

T-H GO 



■^ CO 
00 



CO CO 
Oi o 



05C0 



■*o 



—Tgo" 



r* ?D 00 00 (M O (M o 
■"^tNt^C^i-iiOTtiT-i 

«5~ ■*'-l'* t>oo 

lO T-H 



cOi-iooco'*r^o<M 

(M'-iCO-^t^iCCOt^ 
C0C0-*t^OC0C005 

GO'S ixTo"! 



C5iO(NCD(MiOkCiCO 
tJi^hOOCOOOt-iO 

T* "H T}H ^ CO 00 T^ 



iMC<J 

oo 

rtiOO 



ooo 

ccco 



1-HOO 
COrH 

CO 00 



COt^ 



81 



t>.co 
eo'co" 



■<!}<ioa>Ti<cooocoi>- 

05100050"— ICOIO 
C5_'-i <N_00_^(N^O__<N_lO 

oo'S co*'-*'^co'~r-ro''c<r 



lOCOOOOMt^OiCO 
i-((NCOOOOOO(NCO 
O O lO CtJ T-H rf lO 
O " " 

o 



«o 



(N i-H ■* 



t^C5'-Hl^t>-rt<O500 
eOOOOOI>.CO(M(N 
05(Mr-(C5lOC00505 

o'S •^^co'co^i-Tco^or 



C<l050t^(NCO'-(05 
C000>»0>— it^Tjit^ 
00COCO00t^(NI>O5 



o 



05 1— I 

ooo 
loco 



CO 1-H 

(MO 



N lO O >0 OSi-H 

U3t>. CO O O 05 

o"co" cT i-T c<rc<r 

0(N rl 04 r-t 












03 oj' 



^ 



S_3^ "3 9 S » 



<i m 



o 



(NCOI>.COr-(OOt^O 

T}HiOCO(N(N'*00 
■"^ ,-) T-f^^iO "^fO <N_t>.^ 

oo"§ co" •^" lo eo' 
CO*-! "-H 



•^COCOOSi-tTjfCOO 
OSt^-OOiOTPCOCOiO 

t^ CO t^ t^ co_ i-H o o> 



OS 



s 03 g 

«*-«« o 

^ O m « 

a; rt to N 

Xi S flu3 - 

So iu-r3 o 

^ 0} X Qj o3 



w 



SH 



O 03 
^ O 

-kJ c3 

5§ 



Q So 
r3 "-I • 

03 o 

^° • 

H I 



(V 

o 



(NC^l^'-H 

lOOOOOiO 
(N-* lO 
<N"r-r OO" 
O 
CM 



(M OC0 05 

o eot>.05 



lO l-» O Oi 
05001^ 

T-H OOt-H GO 



lOCOCO o> 
lO lOOO "-I 
«DO> O 



(N 
COt^ -00 

00 osi-H CO 

Ol>00(N 



»-H COI> 05 
O --I l>00 
005 CO 



iC O iC I—I 
t^OO •«ti CO 
0(M --HCO 



COr-(CO (N 
(M rH (NOO 
lO 00 1-H l^ 



t^lNC<>0> 

CICOi-HO 
(N »Cn-ICO 






J^ bC bC bC 
-^ c3 c3 c3 



. ^ li^ K- K- 



THE METHOD 



13 



Q S 

J is 

< ^ 

OS ««-i 

H o 

Z OD 



■* T-H 00 Tj< C^ lO 



000500t^(NCO»0 
TtiC^OiOOCCOSOO 

i>rS CD ocToo'coV-'' 

00 ^ lO T}< i-H I> Oi 



TJH CO O 05 l--> t-H 

rt<*'r-rrt<'"io'co"i-r 
O »-l '^ CO rH 1^1 



00 1-1 O CO t^ lO 

CO lO Tfi lo fc 1-1 
t--^co_05_-<*^i©^co__ 

CO rj^ lO 00 (N 'ti 
00»-l C<1 O 



000»H 05 05 

CO lo ■* 05 00 lo 

(M^CO_^t>.(N (M_^(N^ 

tNToTcT lo'co'co" 
as o CO CO i-t lo 

->* 1-1 lO 



oooo»Oi-ioeo 

CO 00 CO i-H rfl 1-1 
0_iC_(N^i-i_CO^CO_^ 

b-"io~c<rccroo'~i>~ 

O »OCO00i-(00 
CD I— I 1—1 CD 



2^ o 

no J~t3 
« S ^-1 

a fl o <s ' 

. C3 4) S3 i?i O 

& g o3 sjj'^ 

o 03 cp o "^ 't; 
O O'^ o ^ p 

QJ QJ > 43 OjH 



eOCDOOCOOOCDOl-* 

OJIMr-Ht^COTtHOOOi 

CO-^CMOOi-iCDOOO 
CD ■ 



CDTt<OCDOt>.lM»0 

(Ni-iioosai-^coi— I 

i-H_00 C0__C5_CO 00 O CO 
CO 



CD^IM 00i-iO5'-i 
tH 1-1 



•r-(Tt<i-*»Ct^"0 00CO 
C)rt<l0C0C0O-^O 
iO(Ni-it^00i-i00t^ 

iCg l>roo'"<N'~CD'~l>r(N' 
1-l^CO CO lOt^ 
00 i-< 



OOCOOOCOCOOO 
i-tTtHOOfM-^Ot-- 
C0__CO <N„<M„'*.'-l,C<t'^- 

c<r?s orco'~co'"i>"oriQ" 

Tt< '-' CD T-t ■^ 1> 1— I 
00 C^ 



03 'rl 

a § 

03 03 
■T3 03*" 



O O ^ 

, ro (-1 

0) P CO IS3 

g « « 43 o 

^ (U X OJ o3 



O O 

an 



O o3 

£| 

■*J 03 



»OC01>fO 
03 CD 1— I ■^ 
(NO0i-<i-< 



> 

o 



so 

O O 
«00 

.go 



t^OJ CO CO 
■* CO 05 t^ 

co^i-T o6~ 



T-H>T}H 00 

00 iccoo 

1-1 CO tH 1-1 



CD^(Ni-i 
iNCOOCO 
T-i 00 i-< 00 






lO 05 1— I o 

03 1—1 05 CO 

co__oo^ O^ 

CO^r-T (m" 
lO 1-1 




CO 

B 3 
.Si o 



1-1 1-1 

O o 



2'« 



14 



THE DISTRIBUTION OF INCOME BY STATES 






" c3 

go 



CO 



cocoes 

<M (N (N 



0(N»0 
CO— <•* 



O COO) 



COON 

00 GO o 
t^ cico 



00 .-HO 

^o ■* 

0_^CC_(N^ 
lOO-* 



00<M 
O CO"3 
00^ 



<N05t-H 

l-H 00-* 
CO rj< IC 



lOO »Ci 

io_oo_^co__ 
T-Tco'ic 

(N lO 



(NOCO 

O T-H ■>* 

co't^cf 

>-H CO 



00 (Mt^ 

coc:50 



coooo 
■*-* (M 
oo__co_o^ 

CD^CO^TjT 
eO(N(M 
(M «0 



i-HOO iOOt-h 

OHOO 00"* CO 

CO iM — I OO 1— I O 



■*Tj< 00 



O t^ lO O 1-H o 

(M CO 05 lO (N CO 

0_^(M_^<N_ (N^cq^Oi^ 

cd'co'io" oTo"'-*" 

O '-H'<1< O <N t^ 

lO 1-H C<J lO 



05coTf<03eoioioco 

I0c0'>*t~^t-»0>— lO 

i-H^iM 05 o^ oq^io^o CO 
co"!2 oo' tCcD^O^io" 
(N^O CD lOCO 
CO 7-1 (M 



COi-HOOiOCOOOClO 
•<*'— lOOcOCOOCO 
(N C^ i-H COO-* t^ 



■>-H(Ni-l-*05C0t^Tt< 
lOOiOCOClOOOt^ 
1-H^co co_ iq_co_co_^co_ 
(n"?? oo" <>f io"io"^~ 

CO'-^CO CO CO-* 
00 i-i 



»OTt<Oi-iO(NCOt^ 

cogo" 

00 



cDcor^'^tooooo 
(N^— I co_02_T-<_^(M_^r~^co__ 

io"i2 <id"co"o"co'~o'''*~ 

05'-;0 ■* T-icD (M 



(NOOOCDOOOlM^ 

OOOiOiOOCRi— lO 

00~S O" o'~«2'~C0'"(N" 
O ^. (N t^ (N (M rf< 
rfi r-( rH CO 



(M(NaicoT-Hcc>coc<j 

COrtiiOCOi-HOOlOJ 

co^S t^~ orco""co"'*<~ 



(N 



edging 
>H R c3 .. q; 



C3 g 

ro c3 O 
oj oH 
O 3 



03 



CO tn i: 

g-s a 
gas 



?^ :3 ra 






aj Q 00 SI 

^ o pa ^ 

^ <p X O 03 



seS 



O c3 

5^ 



O 

03 



O 

S 00 

cc'— : 



a; a, 

g a; 

t ^ 

03 o 



00 

qOt-( t^OO 



"— I OO OS i-H 

(NfNCOt^ 

Tf< ascoi> 



iC iCi CD CO 

O CD-* 00 



OOOCDrH 
Cl T-H cD»0 
CD (N-* CD 



OO CO lO 
O lO T-H CD 

co'i-T co" 



00 

OS lOcD T-< 
CO 00 »o •* 
-* OS T-( c: 
co"(n' 



(N 



CO 



OOlMOSi-H 
t-^ 00 CD (N 
Tt<__OS__— 1 (M__ 

00"i-r i-T 



ag 






sh aj 0^ a^ 

S bC bC bC 

,0 03 03 c3 

C ^ tH b< 

c Qj a> aj 

3 > > > 



<<< 



rn 


on 




3 


r/1 


r»J 


C 


a 


OJ 


aj 


uu 


oo 


(MO» 


OS OS 


I— 1 


1— 1 


<0 


« 


-a -a 




->-> 


'i 1 


C4-I 


o 


o 


tf 


s 


















s 


3 


ft5tt) 


^1 


^ 




u 


5i 


K 


M 


« 




;o 


-W-TS 


'^'^ 



THE METHOD 



15 



fe 



o 



03 



►J s 
o 






(N CO O 



»0 «0<M 
CO C0 1> 

Oi O CO 



■^ 1— I 

CO-* 



(NCO 



i-H CO 



10 05 
CD<N 
OCO 



(MCO 

CO^iC 
OCO 



■* 1— I O CO 

•<*i CO 1^ 

OD^ CO^ '^„^„ 

T^~ lo" Tt^" c<r 



t^CO 

CO CO 
iq_eo_^ 

cd'^co" 

05<N 



coco 



IN T-H 

TtlT-l 

coco^ 
im'^co" 

(N 



IN 00 
(NOO 
lOGO 



00~ CD CO l> 



CDOTf^t^O(NOOT-^ 

1— l(NlNrHC0'*l01>- 

co CO CO CO 00 o co_^co__ 
o'S co^o"©" co'^i.o'" 

00 ~ T-H I-H CO 



t^05 00 

OrH rt< 
COt-I 



I-H CO 



T-HIN 

.-IIN 

00 lO 



(N(N 

M< CO 



0303 C<l 

co~io" c^T 

IN 



o 



00 05 
OCO 

cot^ 



CD a > 03 



a 



+ 
+ 

-^ -^ -S a-TS 02 r= tC jV 



03 c3 a; 

< ffl 



u 



Tti'-i00CDl>OO'-i 
lOi— iiN02'-HiO<N'-i 
00OcD'-iOl>'#O__ 

cc'S T-H^co^oTiN o'o" 

O '-'■*■* T-i CO -+I 



,_(,_ll-,.l>.COC005»0 

oooO'*'<*'cococoo 

CO"— I'^'OCOOO'^cO 



>00005t^CDOOOO 
OOl-^ascOr-HINiN 

o CO '-i,t~-:,o_02_co__iN_^ 

C<i^.CO^^ IN (N 



05i-i(N03CO'— lt>.iO 

(NCOCOOr-HCOOOO 

,— I t>. i-<_^t^00_^CO '-<^iO_ 
Tt^S lO'i-Tio" (N^iO" 

OOP'-H T-HCO 



iOrt<l>0005(NCOOi 
03IN'— i|>.OCOlNGO 

(N CO cD__iN_^oo__Tt<__aq_Oi^ 
cT?^ co~t--"^'~c<r^'"co'' 

O^fO'-H (N coo 



cooococoioco-* 

■* O (N <N t^ to t^ 

CO O "-I '— 1 CO 

o 



O 00 

T-( O 

(N (N 



C^lOCOOi-iOSCOOl 
COOlOO'-HfNCOCO'-i 

as CO (N co_t^_ 'O io_t^ 

ff 8 



rt< t^ CO r-H lO lO 



IQ 



i-HO0TtH(NO0'*CO'-i 
Oi-^cOlNO'O'CO 
T-i --H O^lN_^00_^lN T-i iO_ 

t^~S co^i-Tco" t^-" 
co'r 



en 

ti) g o 



N 






& 



o o „ 

^^ Oj t^ 

<u ca m N 

P (U X oj 03 



O 03 -M 
+^(3 
X vf-t 



R ro O 

O <U lO 

fl c o 

-T-l ^ ■ 



> 

o 

O 
00 



°cO 

LO to IN '-< 

O 05 -H ,V~ 



CO 



IN 00 ^ CO 
CO CO 00 CO 

t^ CO CO 



COIN-* CO 

t:^r-ICOTl< 

CO t^ a> 



IN 

COrjH-*^ 

CO lOt^co 
r-.__-*^ co_^ 
oTi-T T*" 

CO 
IN 



CftOO CJl t^ 
00 lOO 00 

iNOOr-ICO 



IN O 03 lO 
^ ^ 03 IN 
(N ^ '^ 



l^03 

(N»0 

O 



00 03 05 00 
O I>03t> 

CI CO CO 



O O CO CO 
^00 030 
1— I t~- 03 



^ 8 



p^ 




'^<<< 






^3 



Oo 

03(33 



O o 
•2 '^ 



16 



THE DISTRIBUTION OF INCOME BY STATES 












i>c<j»o 


Tt 


COiO 


rH—iTt 


— ( 


CO-HU-. 


* 


rH 


in 

(N COO--! 


o 










IMCOO 


l> COO 


O3O5(N.-0 05iN(MO: 


Q 


(N COCOCOO 1 








X 


IC_I>_.-H_ 


1-H 1-H t>. 


(NlNCiOOOiOOOrH 


^ 


i-H 1 OOININ 1 














l~-~fe o"'-roo'"o'~(N''-* 
CO ° lO 00 »-< lO O 














0^ 


i-TiCio' 


CO C005 


IC 


lO COIN O 


I— 1 






t^ooco 


1> 0505 


o: 


00 CO rH 


•* 








o_ 


CO i-l 


00^ i-H CO 


OC 


00 ■* 










I— I 


T-T 


1— 1 








d. 


^ 
















II 


.. 


o 














ll ■* 


2 


I 






OOOIO 


CO o^ 


00COCO(NiOl:^Tt*Tt< 


o 


1 l^ • 

CO t^lNCOOi 


3 


> 






"* GO iQ 


lO oo 


t^cOOkO(NTtHOCC 


b- 


O OOINCD'* 




Q 




C3 


Ci O 05 




0_lN CO^-<# CD__00 CO^iC 

u:ro c<r i-TTiTivrc^i 

t^ ^. 00 Tt* (N CO 


CO 

IN 


1^ rH 00 






o 


-^-SHr-l 


O <N05 


CO 


IN Oi 


< 

E-i 




lO 


l-H »0 


T-H 


■* 


■«# 1-H 


CD 














II ° 








CO coo 


tH lOCO 


i-H-'iHt^OOO'O-^-^ 


cr 


^ CO Oi ^ ^ 


i 




• 


OO—ITt* 


CD tQOO 


l>(NI»-*'-Ht^'-H(M 


IC 


■* cocor-ic 






03 


rH^CO^-*^ 


o_ ■*_©_ 


00 ■* ■>*_00_-«i<__T)<_CO__lC 


IC 


00 -^O CO 


t 




h-) 






oo~S orco'i-Ti-Tc^'oc 

io'-:(N (N 1-HCD 












'^COlCi 


icT co^io" 


CD 


Tj< lO »-l Tf 


o 






Oi-l 


CO r-l 


Tj* 


Tj< CO 











(M 


(M 


CO 


1— 1 


I-H 1-H 


o . 


o 
















ll 


§1 
5l 


CO 
















II 9 


g 

H 
^ 


"a 




»OTf<Tt< 


i-l 005 


COOCDCOOOCOI^C 


cr 


Oi Tt<INlOrJ< 


cS 




oooco 


(M TlHCO 


OOOOJt^OcOt^tN 


l-H 


rH OCOOl^ 




lOOO 


""L ^^"^^ 


CDIN'-HiOlMOOOCr 


UZ 


CO CO^ 05 


is 


^ocf 


Oi -^ao 


TjT^ t^Tc^^co'co-oo"-* 

t-9Tj4 ^ ,-HOC 


CO 


O" Cfrn" co' 


"o fl 




■o 




-*COi-f 


■<* »o 


I-- 


i^ CO 




03 




CO 


CO 


lO 


IN 


<N IN 


•1-3 






t^OO'-i 


CO 1-H 05 


00cOCO00COCOrh.-H 


OC 


02 
O tH QOCOCO 


oq a 




oj 


DO 


OIMCO 


C<> O CO 


COt^t^QOCOiQOi-* 


o- 


lO OOCO-* 




cc 


03 


(N_O0_O5_ 


00 lOCD 


0_0 05_(N__0_05_J>,C 


kC 


CO 1-HO lO 


|§S 




o 


§ 


(©■"iCo" 


lo" io'im" 


CO^S (N~-«l<"t>-"'-roo'~'C 


I> 


'*■ IN^rH" C0~ 


Z 




COIM'-I 


lO »o 


t^ 


t^ t^ 


g 2 


o 




CO 


CO 


lO 


IN 


IN C^ 


§ 




































II ^. 


w 






Olt^i-H 


Tf4 lOlC 


OCOiOcOrttCOcO-^ 


r-H 


CO O5O1CD00 


3 


Q 




c3 


Tt^ (M t>. 


lO Tfl CO 


OCftTj^COfNOOC^-* 


(N 


^ 05 Tt< t^ C5 




CO •<*,'-i. 


'^ t-^lM^ 


CO CO O O l^ --1 (M_^(M 


C 


i-H_ 0^05 CO_ 


f 


>-} 




^ 


'*"o'"c<r 


od" r^^i-T 


co"o io~Ttrt>r(N"co"u: 

IM ^. CO tH rH t^ 


CO 


co" co" in" 


< 






OCOi-l 


rf< (N 


■>* 


Tf< lO 


3 


g 






CO 


CO 


Tt< 


(N 


(N (N 
















IN 


co^ 




, 


IC'-H'* 


CD IN »-i 


i-HO(NiCt^OcOC 


T^ 


c 


<J -^INt^icO 


d-3 




a 


00 CD 00 


,-1 Ot^ 


COcDCO(NC^OiCDt>i 


c 


c 


^ t^ CO t^ lo 


g 




a 


<M05_C0^ 


'"!> '*l-°- 


■*cDOiO<NOOO- 




c 


^ t^05 O 




^ 


ooo'o" 


lo" t>rco~ 


O'S UD CO^T-TcO^I^O- 
t^Po r-^ (NO- 


CO 


c 


o" in" tjT 


oT-i 


§ 




rHlO(M 


1> -* 


■* 


■» 


i* lO 


S; 03 






CO 


CO 


CO 


(N 


c 


^1 c^ 


3 a 




















4^ .a 














05 


"3 S 


5 






lOOO^ 


CO 05»0 


OOCOt^(Nt>.COOC 


1> 


t 


■* COOOOSt^ 




< 






lO (M !>• 


05 CO 05 


O00t>-05iCIINl^(N 


cc 


c 


O INCOt^OO 


H 






CDOICO 

oo'"o''o" 




IN cO -* "O^i-H 0_IN_iC 

ic~g >o"co"oo~T}ro"'-H 

t^'-r ''S <-< COi- 


cr 


c 


o coa> ic 

h" o" "O" 








^iO(M 


i> t^ 


cc 


c 


D t^ 


3 o3 
ai.5 








CO 


CO 


CD .- 


(N 


c 


^ (N 








:-2 : 
:§ : 

ill 

00 ^ 

o.a : 

E>> : 


a, 
5i 


3 


o 




q5 












k 

-^ 




1 
















■s 


03 


+ 

pq 
+ 


ccS, 


a 














B 

m 

.3 
3 


, 


> 

;!3 


s 


£ 


• 


Oi 

1 






ta 




^ 


3 


:< 


III 
H o3i: 














V 




i^2 

S a;'*-' 

3 ^o 


o 








C 




'3 

41 or 

<U -1- 


03 

73 


a; 

3 

8 
a 


1 






a3 

O 


a. 


3 

u .3| 
15 S 


I-H 


3 

00 


s 
cq 








c3 C3 lU^ 


P fl 3 a 

-3 '^'S^ 




t« t„ o 
° o ^ ^ 

t< +j (U 0. 
CD fl m N 




3 <o^ 


3 = 




a <«, 2 « 03 

3 O.S rt > 

H &H 0) <B 4J 
d 3^ bC hC bC 










> 

< 




> 






1 


1 


C 




i 

1-^ 


a. 
s- 

0. 

1 






t 


i 1 


OS 

< 


1 

< 


03 

1 





THE METHOD 



17 



s 

o 

4 
9 



2 ^ 
P 



OlO 00 
00O5 t>. 
050 00 



oc »oco 



«OOt^OQOI^<M-* 
05 (M 00 00-* O O 



-OfO 



rt< Ot-i 
i-H (MOO 



1— ( lO 

00 05 
TfH(N 



t^ 005 

CO 03CT> 



OOO 



C5 10-* 
CO t^I> 



OCO 
IM iCi 

T-H05 

CC(N 



(NO 



O 

<0 



OOi-H 

00 CO 



rt<0>C0CSO00l^O 
CDOC0005(M(N35 

oo"S o" oo^^-r^jTio" 

(N°. .-H (N 



CT>00(Ni-<(N-*Oi00 
lOOOt^TjH-rtHt^iOOO 

T-H lO 1— ( Ttl 1— I Tj^ (N 

00~gi 



00' 



i(M ■* 



iM 



iOcOtJ<c0 00iO(N(N 
»OOOOi-HCO'-H(Nt^ 
O00CDi-H-rti00»O»O 

co"§co" 
0°--* 
(N 



o 



05C0l0-*C000OO 
(NOlt— I0505i0>— ii>. 
OOI>rH<N(N(M(M.-H 



O'^C000t>.C000TtH 
I-H O ■* 1> t^lOCO 

t^OOCO (N rH lOCO 

^'§ CO- 
OP T-H 

(M 



OSi-HCOO 



(NIC 
OKM 
■* <N 



00 
00 



Tj^ 0(M 
i-H lOCO 

(N OTf< 



1005 TJH 
t^O (N 

05 00 0> 



(Nt-I 
00 00 

(N I-H 



bC 

03 



^ «3 o3^ a 

t^ b « 00 <L> 1=] m 
o3 oj « 






< w 



o 



OOTjHCOCOOOOCOrH 
lOOl'-iOOOOrO 
OO'-it^i-HCO'-HQOO 



lOl— lTt<COTt<TtlCOTf4 

00O5O<N'^(M0000 

1-H^co t^^i-H eo_oi^o_^'-H 

t^ P »0 (N I-H O) 

CO 



03 

a 

m 
r£ ^ 

s S o 



o o 

Ch ^ 



CD fc4 

CO N 



03 O 
AH 



5S 



o 

03 



S IB o 

o <u lo 

■9 S2 

is ' 

o "^ . 

H f 



co^ioco 
COIC-* ■>* 
r-i (TO t>- »0 



00 

•o 

(N lOCOCC 

coi>aiT-H 

cO_^00^tH ^- 



lO CO I-H 00 
t^COOOi-H 
05 I-H lO ■* 



Tj<»ci>co 

-* O "-H 03 

00 (N 00 00 



■^lOOOcD 
CO lOO 1^ 
02(M Tji 03 



OOCOOiiO 

Tf< 03Tf< CO 

t>._'*^l> <N_^ 

io"i-r i-h" 



05 

CO iM 00 00 

O OiClO 

1-H I-H t-H O 
1*1 I-H 



t>.t^00iO 

t>- CO O 05 
CO i-l CO o 



ti;«<H tH 

t- Si t5 

a; <u^ 

b a e3 OJ 

'2 O cu 3 

«« S « 03 

O.S 03 > 

^ Qj q; QJ 

aj M bD M 

^ 03 03 c3 

fl >H b ^ 

a (u (u <u 
3 > > > 
^«< I 



bfl 
< 

o 

on -*^ 
3 X 

V 0} 

^■S 
<=> rt 
(N.S 

i-H-d 

-Si 

-1^ 03 

■^ 03 

^ 03 

00 

^ -3 
«-> -I-i 

"a a 

-^ Oi 

^ <v 

IN j3 
CD 



o3 
M 

73 
a> 

. a> 

q5^ oo 

-d 03 
II 

0-73 

CO "O 

05?* 



18 



THE DISTRIBUTION OF INCOME BY STATES 



9 









OT3 






(N 1-H lO CO 

cD"co"c<fic" 

CO lO IC t^ 



1-1 CO <M (N ^ N 

N 05 05 t^ CO i-H 

o"':c'co"cri>"i>' 
t^(N o CO 05 o 
o_eo co^(N ■*.'*_ 
(n" i-T i-Tio" 



CO<Mo6-* 

C0_^<O_rH O^ 

(xTi-r c<r 



rM(M COCftiNO 
O CO t^cDlM Ol 
CO Oi kO lO Ol o 

i>rco'"'-H'"'-rio'io'~ 

CO O ■* O r-4 Ttl 

lO 1— I 1—1 CO 



CO-* lo C5 CO 00 

CO rH O ■* O lO 



(NCOCOIXNO 

r-l CO (M CO t^ 1-1 

(N_O_CD__TlH__00__t^_^ 
(M Tf 1-1 -* ■* 



^5 
O 53 

o g (u 

■ K^^e 

•ri ^^ , 



O O-^ O 03-3 

« a> > (U ai -tf 

03 S3 « 03 c3^ 

< « u 



coos-^eocoooco-* 

C^Tfit^OOOiCOOOtN 
OOOOlNT-iOt^tOO 



•"*iCiOOi-iOTt<0 

cocooioicooo'Oio 
Oi ^ ■<*i ■* o^co__o_^__ 
lo'S wT r-Tco'co"— r 

00^(N <N i-i CD 



C<J0000CO»-<-<*COlO 
t^COrtiCflC^CO-^t^ 



MB 

c3 2 

o3 03 

o o 

a> d CO (4 

a « a> rs O 

3 <u X m c8 



a. oj 






iM 1-1 

-* ■* 



O lOCiOO 

t^ooTt< lo 

CO-^C^J rH 



cf i-T 



cocooi-* 
O 1-1 o o 
(M 00(NCO 



OOOOXM 

00 005 lO 



a =3 



<D 



o 

O 00 



8^ 
.So 

1— t 



O .3 



a a 



t« rt W 03 

O.S 03 > 

fc^ q; 0^ ^ 

O) b£ bC bC 

-g 03 03 03 

C i4 ti ;-i 

n (u <u 0) 

3 > > > 



aoi 



3 


3 










3 


3 


o 












bC bC 


<:< 


'i 1 




o 


O 


m 


tn 


3 


3 




m 


C! 


a 


a; 


<u 


uu 


oo 


(NIM 


0>0i 


1—1 


I— 1 


<v 


a> 


JSM 


-*j 






'f-i 


O 


o 


i? 


s? 












Q^ 










» 


3 


oq"q 




<» 






g 


gi 


^ 


53 






■ce 


'^^ 



THE METHOD 19 

One other remark should be made concerning the variations among 
States in farming. Differences in crops and their values are taken account 
of in the Census figures; the same is true of variations in the amount spent 
on fertilizer, labor, interest on mortgage, and animal products. Crops sold 
by farmers to other farmers and used as feed by them, are taken account of 
first by using the entire crop values for each State; and second by adding to 
their value only that part of the value of animals slaughtered on the farm 
or sold for slaughter, and of animal products which is imputed to other ex- 
penses than the value of feed. There are, however, variations in the feed 
of animals, especially the proportion that is due to grazing, which are not 
taken account of in the Census figures. Such variations cause some error; 
corrected in a very rough manner for the range States alone. But the error 
cannot be large; for crops constitute about 90 per cent of the total value 
product according to this method of counting; so that the error must be in 
the remaining 10 per cent only. 

The amounts shown, then, are not put forward as exact; they are, rather, 
working estimates, which appear to be substantiated fairly well by the 
cross checks which have been used.^ 

E. Corporate Surplus. 

The corporate surplus in 1919, which amounted to 2.0 billion (Income 
in the United States, volume II, chapter 25) is a difficult item to distribute 
among the States. Perhaps the best approximation is to credit it in the 
same ratio as the value added by manufactures in each State, an item which 
is reported in the Census of Manufactures for 1919.^ A comparison with 
earlier Censuses shows that this percentage distribution remains fairly 
constant from one census period to the next, so that there can be no great 
error in applying these figures to the total corporate surplus. 

1 The low average income per farm in Montana ($137) may not be typical. Montana 
crops in 1919 were particularly bad; the composite number of all crop yields in 1919 as 
shown in the Department of Agriculture Year Book, 1920, p. 810, was 40, as compared to 
83 in 1920, 66 in 1918, 55 in 1917, 86 m 1916, 107 in 1915, and 90 in 1914. The "hypo- 
thetical" value of all crops in Montana, as estimated by the Department of Agriculture 
(page 807), in 1919 is $71,552,000 as against $146,713,000 in 1918 and a five year average, 
1914 to 1918, of $95,158,000. If the value of crops raised had been what one would have 
expected in a "normal" year, then the average income per farmer would have been about 
$1,200 to $1,500 (instead of $137) a figure that is not out of Une with the averages of 
surrounding states. 

2 Various other ratios of distribution have been suggested — (1) the distribution of the 
non-agricultural income of each State; (2) the distribution of dividends received as re- 
ported by the Bureau of Internal Revenue in Statistics of Income. Both of these methods 
are logical, especially the latter. It is questioned, however, whether corporate surplus 
really goes to stockholders in the sense indicated. To some extent, it goes to the com- 
munity. As a practical matter, the distribution resulting from the use of any one of 
these ratios is about the same. 



20 THE DISTRIBUTION OF INCOME BY STATES 

F. The Totals. 

The preceding items need to be cast up to get the total income for each 
State. While the figures for persons having incomes over and under 
$2,000 exclude the farmers, and are therefore rather artificial, they possess 
a certain independent interest. Of course this form of presentation is 
necessary because the Federal Income Tax data give arbitrary prominence 
to the $2,000 line. 



THE METHOD 



21 



< 

m 

o 
u 



o 

o O 

W H 05 

•^ D "i 

H 
«2 



o 

PQ 
H 



I 

iPi 



03 3 

at? 

O OQ 

o 



c3 






egg !>^ 



O S O a; 

^ § ^ S 



;o ';0 00 CO -* 00 

10^-*_IM__GO_^0_C»_ 
lO Tt< ■* 00 (M >0 

CO (N r-t 05 ■* 05 



^005000 GO 
O OOt^ (M 00 00 

rH_iq_Tt<_0_a3^CO_^ 

oo'"Ttro"-*"^"o^ 

•* <© 00 CO CO C5 

r)H (M --H O "* 05 

co~ 



OOOOOQ 

oooooo 

(N •* 00 O CD O 



eo(Nr^ 

l-lTf<0 

(N -^OO 

-"j^t-Tco" 

COC^i-H 

(©coo 



O5r)H00 
»o O >— I 
oo__^_o_ 

■>*'~c<roo" 

0_C0 05 



OOCOt-I >-< ■^ 

l-H_p^t>-__t>_CO^ 

t>roo'~»o"t>."o6" 

•<*Q0>O(NCO 

co'^i-^'Tfc^r^ 



CO CD -^r^ CO 

'-Ht^OOO'-H 

t> t>CO 05 lO 

t^"c<rof.-rcD" 

COOCDOOCD 

c«5"i-rT}rc»f,-r 





t» 1—1 CD CO CO T^ 




CD-*rH 




^.i-lOiOOCO 




COiO(NO»00 




05»00 




1-iOCOt^^ 




OOCDiN (MiM CD 




a>»oi>. 


s 


00'-<(M(NCD 




CO CD t^ CJ3 CO i-H 




(Ni-iOi 


CDCDOiMIM 




t^ in CO (MM 


s 


rHirjOl 


•2 


CDt^COO O 


«; 




•S 


CO (N 




TflcOCDCOCO 


8 




CO 




=; 




m 


1 








•« 












CD(NOCOCOOO 


OQOO 


V 


00 i^^'* 00 1-1 


r^rH i^ooGOOJ 


K5<=":i 


o 


CDt^C^OC* 


5» CD ■* d5_05_CD__t^ 
rS 00"cD'o6"cD~C<ror 


-^ 


CDi-iiO 


•^ 


i>^cD_^'*_oq_io_ 

C«3~CO~CD'"'-riO 


Kl 


1-H T-l 


<» 


(N.-lTfl 


^ 






1 


1-1 




^ 


m 


IS 




CO 










CO O CO CO lO O) 




CD 1-1 00 




CD.-lrt<CO(M 




TjH ^H 1>. CO CO t-- 




lOOOi 




OO OOCDIO 




IXN^t^OCO 




1-iOCO 




CO-^OCDOi 




lO ■* i-i 00 t-- 00 




CO(MCD 




•^ lO (M 1-1 1>. 




CO »i^ 05 O "3 t>. 




Cit^O 




lO »o r>. lO oi 




C<«rH t^(N»0 




lOCOCD 




(MOO-^-^CO 




1—1 




>*»-HCO 




(N (M.-< 




m 












ON.O --1 "^O 




t^rHOl 




(NlMt^OOM 




(M lo T— 1 r- <— ( I— 1 




lOiOO 




coocot^-* 




CDQOOO ■* t>- 




IM OiO 




t^OOCD(NI> 
















COCOCO C2 10C0 




t>.OOi 




t>-C»05(NC<J 




O !>• •* CO •* (N 




(MCOlO 




i-tCOlM lOOO 




■^ ^ ^co 




t^oot^ 




OCOCDCD(M 



<o 



to e3 3 
mP-i o c3 « o) 



^ f > 

& & § 

a> CD S 






03 O (M ^ 1-1 CO 1> 
05 Tf I— I »Ci CD C5 lO 
I>._CO_T-(_^QO_00_(N_^00 
CO~CO"rjrc<ffo"o'~Ttr 
■^ 00 CO COO O (N 
05 03 CO 1-1 (N lO CO 



TJH 1— I 00 CO ■<* 00 05 
<— I O C<l >— I lO lO CO 

"^'*-'*^'^ '^^"'^'^^ 

CO'~l>~(M'"c<rco'"Oi'»o" 
00 05 IM CO CO O CO 
CO CO 00 CO ■* 05 o 



ooo ooooo 

OOO OOOOCD 

"^^-■^^ O 00 o oo__co_^ 

coc<fod" io't^"-*'"co'~t^ 

i-( rH T}< t-- lO lO (N O 

CO rH C>l »-< tH 1— I 



c^-X>Zr S 



ooooooo 
ooooooo 

00O<MOCD (M 00 



»0 lO •* O O CO lO 

OCDCO^ OJ^O 
t^^^O^iO^CO^^CO^^CO^^iO^ 

S co~t^''id~iM''oo'~'*"c:r 

ci lOCOOlt^-OiCDCT) 
2 COCOCOtHi-icOCO 



<i> OCDINlCCOOJt^ 

O ^OllCXNOrHt^ 

t; arco~c<ri>'''#"r}H'~o'" 

S 00 1> CO (M CO TjH Tj< 



^ 



OCOO OOO'^'-i 
00 (M t^ t^ CO lO ■<*< 
T-H_'*__0_00^l>_'-^^CO__ 

oo'"o"t^'~c<rt>rcD'~or 

00 C^ t^ 00 05 t^ C5 
lOlClOO (NCO 



05 t>. (M CO 1-1 Oi CO 

T-l I— I -^ t^ O CO ^ 

00 05 00 C5 lo C2 r^ 

O0'~'*'co'"oo'"^''rirc<r 
(M Tti r}< Tj< O 1-1 >-< 
COtIH-"* 1-1 (M(N 



So 

|o3i|5|| 

y te " is 3 -S 9 



22 



THE DISTRIBUTION OF INCOME BY STATES 





'TJ DO 




^ s a CO 




exc 
arm 

far 
orer 




73 '"'^■S 






o a os~ 




Eh- 








e3 




-u 




O 




H 




OJ 








O rv 




S; :3 








U 




CO 








<u 




a 




(H 




cS 




p^ 




03 




c3 2 




f-^-i 








p-S.So 




eof n 

ultur 

shav 

$2,0 




Qcom 
agric 
erson 
under 






►-H a 








fl 2 >o 




^ 3 So, 




o — -«£i 




a> :3 aj€^ 




9 n o a> 




i^g^ 




M & 




a> 








03 




+i 




02 



oq_oq_c»cD_oq_(N_CR'-<_o^ 

iCi-IOOCO'00(M'-<(M 
T-lO5C0I>iOiQC0COSO 



lO^ iO_ Ci^ ^^t-^ "^^"^^ '^^'*« 

l>OG002»000f0TfiO 
1— iC5C0O5CC>0lt^»-iT}< 



ooooooooo 
ooooooooo 



kOCO 



1-1 rt< O 03 CO CD 
coo -^ -H CT> 1-1 
Tfl^ 05^ (M__ C0_ t-»^ '*_^ 

O t^ 03(M --I ■* 
<N coco-* 



05lOt>.W3 

<r>_<£i 05_05_ 
coiocot^ 



Ot>.«Oi-H 

-* 10.-H (M 
Oi 00 GO CO 



oooo 
oooo 

coo IMO 



t^(MCOO 
COCNTfi lO 

oq^(M^T-<__co_^ 
^"co'co"-*" 



1— I CO O CO 

oit^t^co 

»0^(M_^CO_r-H^ 

crcD"i>rTjr 

i-HCOOO-* 
COOIC-"* 



(NtJ<t-HO 

Tj< T-H lO lO 

t»_-*_00^O_^ 

co'"'-rco'''-r 

CO t^ 00^ 
C01>00 



oooo 
oooo 

C0rj<00 



01-rt< 00(N 
CO_^CO_CO_^i-H^ 
O^-^'t^^io" 



05i-HCOCOt^CO(NCO 
i-iOOCOCO(MOOOOO 

i-t^co_^oo_io_io^co o 03 

■^"i-H"i-rio~t>-''o"oo'~o'~ 

iO-*(MCOOil^cOU5 

C^ I— I 1— I Ttl 1-H ,— I 



0>Ol^COt^OO-*>-l 

C0CDO300OC0C^O> 

'-H^CO_(N_TlH_^'-H_t^_^CO__t- 

i-To^co^o"!— "-"-Tc^rio" 

OOCOIOO-*I(NCOCO 
(N (N 1-1 CO rH C<1(N 



OOOOOOOO 

oooooooo 

C0__0 (M_^0_^CO (M^GO^-* 

co^co'co'oo" efco" 



T-HOt-HlMlOT-Ht^O 

OGO"— i"*icOiOO'— < 
03(MiCi'-H05(M'-HCO 









e 


J^ 


t^OO 


-* CO IN 00 GOO 


^ 


c^ 


^ CO 


iM CO ^ 03 CD GO 




t^co 


O 03 I— 1 lO 03 O^ 












■^ 


fO "—I 


00 <M COO CD 00 






(N 


rj< (N G0 00O(M 












3 






^J 


« 


^ 






•^J 






^^ 



Tti O CD CO 

to t^ "-H O 

O 05 rH GO 



O 



(M ^ COIN 
CO O t^ 03 
00 C-J lO t^ 



CC 



t^COiO-*<N>OCOiOO0 

^HCNrHfO-^t^Oit^-* 

OO '-*„'^'-l.t>.__CO__(N_^(N__CO^ 

00OC00005(N0iO'-i 
•^iN-^COCOr-tTlHIN 



COt^TtiGO-^OOOt^fO 
OO'-H'— I'-HOJCO'— tco 
CO 0> rjH t>. '-l.'*_"*.Oi^'-'„ 

(N~i>''"oo''t>^co'"oro'"co"io" 

COOOrJ<(N-*COlNOiO 
COrHC<li-lr-li-(i-(iH 



l^cOt^(N 

COIN -^lO 
iO_iO^CO_^lN__ 

(N^—ToTTir 

rH iOTf<l-^ 
Ttl CO CO rH 



(NOiOCO 
>OTf<lNCO 

lo I— 1 1— I CO 
i^-'co^oTo" 

OOOi-iOS 
(Ni-lr-t 



<NCD-*'H 

CDTf< 05 
l>_O5_00_.-H_ 

02-*i oo^-. 
l-Hcocooo 



C50COIO 
(NCOt^-* 
(N_01>05^ 
C<rcD'io"co'" 
1— I Oi 05 ■* 
rH i-l i-HlQ 



- 2 ^ 

•S-S.a 

■S g^ 



gj-^ o : £f,^ S : : 



o CO R CQ 



CO 3 



2 ?^ R 

c3 g o 

CO e3 o 



S O^OOOiO-*iOOO 

S T-(OlNO^iOCOt^ 

5 '-H^O__05_00_CD__00_lN__(N__ 

s (N'"r-rt>rorco''orio rjT 

S C<«(N (NT-trlrH 



^O'*00C0OC0C0 
OOCOt^iOCOGOOJIN 
i-H_CD__O_^(N_'-<^(N_C0__O__ 
TjrtCc<foo"oO~CO~T-rco'" 
lOC01>iOCOi-H»-tcO 



oo»-H(Nio->*eooiO 
eoioost^cooGOoo 
eot>io(N":iiNt^'* 



M, 



03 • a 03^ a _ 
o ««,^o ^-aS V 





o <-< lo »-i 




cooooi ■* 




CO Ol CO lO 










CO 1— 1 03 to 




rjH coco lO 




OOtJh (N O 1 










(NICO II 






lO 






m 




CO(N<N M 




l:^(NO O 




OcDOlIcO 










COCO 00 IN 




CO to O lO 




OiOOC IN 










i-H (NICO II 






CO 






«^ 




OOO O 




OOOO 




■* OOTt< CD 










0(NO O 




INtHcD O 






o 






(N 






e^ 




^Tf<r-l CD 




COIN 03 03 




OOO O 










lO^O rH 




CD 0> 1— 1 lO 




i-H ■<* 00 






o 


K 






O 




««# 














S 








1 


(Nt^CD It^ 1 


CJ 


i-H ^ O -'-^ 


MS, Tt< CO iN 1 0~- II 










rH COO iO 


C 


lOCOIN '* 


Ws 


1— 1 CO 






IN 






m 




OrfHC 


5 CD 




TticD C- 


5 CD 




t^OC^ 


(N 










(Nl^CC 


3 IN 




lOCO »- 


lO 




lO(NC^ 


5 — 1 






(N 




Ol^Cs 


lO 




05T-ICC 






•^r-KZ 


CD 










-jiNc: 

cOiOO 


IN 








(N^OC 


oo" 
m 










xri 




c 






D 




o 


.SS 


, 1 




to 


03 




.3 fl c 


^ 




3 &.£ 




s^s 






^ 


C 


u 





THE RESULTS 23 

III. THE RESULTS 

1. New York State with an income of about nine billion dollars, which is 
over one-eighth of the total National Income, has by far the largest income 
of any State. It is followed in succession by Pennsylvania, Illinois, Ohio, 
Massachusetts, Cahfornia, Michigan, and Texas. At the other end of the 
Ust is Nevada, with an income of less than one hundred million dollars. 

2. The Middle Atlantic States (New York, New Jersey and Pennsyl- 
vania), taken as a group, have over one-fourth of the National Income; and 
with the East North Central group and the New England States, have 
more than one-half of the total. 

3. New York again heads the list of per capita incomes, with $874. 
Nevada, California, Delaware, Wyoming, Massachusetts, and Washington 
are next with around $800. At the other end of the scale, with per capita 
incomes of less than $400 each are Georgia, Kentucky, North CaroUna, 
Arkansas, Tennessee, Mississippi, and Alabama. 

4. Taken as a group, the Pacific States have the largest per capita in- 
come, with $796; next are the Middle Atlantic States, with $783. The per 
capita income of the East South Central States was less than half these 
amounts, or $364. 

5. The average income of the gainfully employed shows variations from 
the per capita income due to the wide differences in the character of the 
employment of the population in the various States. South Dakota and 
New York head the list with just over $2,000; and close to this mark are 
Nebraska, Iowa, Delaware, Illinois, and Wyoming. At the other end of 
the list are Alabama and Mississippi, both just under $900. 

6. The Middle Atlantic States have the largest average income of 
gainfully employed with $1,886 and the Pacific States have $1,837. At the 
other end, the East South Central States have the smallest with $979. 

7. The per cent of non-agricultural Income in each State received by 
persons having incomes over $2,000 per year is difficult to interpret. The 
percentage is high where there are large incomes; but it may also be high 
owing to a large number of moderate incomes. If we had sufficient data to 
plot a curve representing the distribution of incomes in each state, such 
variations might be brought out, but this is not feasible with the existing 
data. South Dakota shows the highest percentage, having over one-half 
of its non-agricultural income received by persons with incomes over 
$2,000; next in order are Iowa, New York, Nebraska, Maryland, and 
Delaware. At the other end of the scale are North Carolina, Wisconsin, 
West Virginia, and Alabama, which show about one-fourth of their non- 
agricultural incomes received by persons having over $2,000 per annum. 

8. Texas has the largest farmers' income, with nearly 900 milUon dol- 



24 THE DISTRIBUTION OF INCOME BY STATES 

lars. Iowa and Illinois come next, each just above 600 million dollars. 
Rhode Island farmers are last, with aggregate incomes of three milUon 
dollars. 

9. The largest average income of farmers is fomid in California, with 
$3,485; next in Nevada, with $3,354. The only other States near the 
$3,000 mark are Arizona, Iowa, and Nebraska. With the exception of 
Montana, which had an abnormally poor year in 1919, the States having 
the lowest averages (all less than $1,000) were Kentucky Tennessee, Con- 
necticut, Alabama, Florida, Massachusetts, West Virginia, New Hamp- 
shire, and Rhode Island. 

10. Taken as a group, the East North Central and the West North 
Central States have nearly one-half of the farmers' income of the country. 
The Middle Atlantic States have only 6 per cent, and New England less 
than two per cent. 

11. Farmers' income constitutes over one-half the total State income in 
North Dakota. It is over 40 per cent in South Dakota, South Carolina, 
Mississippi, Arkansas, Nebraska, and North Carohna. On the other hand, 
it is less than four per cent in New York, New Jersey, and Connecticut, 
and less than one per cent in Massachusetts and Rhode Island. 

12. Taken as a group, farmers' incomes constitute about one-third of the 
total income in the West South Central, the West North Central, and the 
East South Central States. On the other hand, they constitute about one- 
thirtieth of the total income in New England and the Middle Atlantic 
States. 



THE RESULTS 



25 



02 






o 
o 

iz; 
I— I 

o 



CO 

<: 



■g > 



I a"* ^ fc- rt tD 



t< S 0) o -a ^ 5j 



3 oS gaa> 



^ 8 (^ g, a 

^ g bC53 



ass g.c3rH 

3 o.s.a'"' 









cS 



•^ 03 C <u;7r 



.M a> 

Ph 



005 



3' 
Phi- 






=J 
a o 



OQ 



CO iM t>. IC <N 05 

rtH> ■* 40 00 r>- 
TJH CO C<5 t^ 10 ^ 



Tf<coa> 

1-1 (N CO 

000 1> 



IC-* 05 (N 00 
(M (N 00 10 t^ 
t>. 10 00 t^ •<*! 



Oi t>- ■* 00 -* O CO 
IM t^ 00 O --H 05 O 
»0 05 CO CO O Oi t^ 



^ ,_lrt^^,-<,-l c<j ,-1 ,-1 ^ ^ ,-1 ,-1 rH 1-1 T-H t-H .-H (N I-' '-' 



00b-Tt<b-.OO 
»0 (M 00 CJ5 O '-' 

O05C0(Nt^00 
CO rH 1-1 t^ (N 



t>^co^co__ 
10 CO-* 



r-H CO -^ i-H O 

o i-i iM r^oi 

CO i-H CO '^ 05 



CO OS O C<J CO T-H T-( 
(M Oi "-H 00 t^ 00 01 

co_co_^o^o_ io_o_co__ 

CO"oo"|>~I>^co"|>'t}h'~ 

o >o 1— I O >— I 10 c^ 
05 00 CO (M C<1 rj< CO 



■* I-H CO (Ni-H W'-' 



CO tH ONOO lONCDCON NC^CO i-H i-h 



O 00 O 00 00 CO O O "-H 0> 05!>050C^ C? CO 10 O CD t^ rH 
O CO^C^iOCOiO I>CD03 OiO-^OKN O»0t>.OC0C0C0 

O ' ' ' rft ' vi COCO06 iO(Nt>-COlN C<i(N(N "-i >-< 



!» COt>.CT)OOOt» -^OOCO 
(M 00 05 (N 00 (N T-i 1>»OGO 

CO 10 ici ira t>- 1>- 1>» oot>-co 



oooocoo«o 

CO»CH>l>"3 



T-( CO 10 »Ci »0 (M IN 
OOOCO T-H GOO o 
»0 t>- lO U3 CO t^ CO 



•>* CO 00 CO t» i-H 
T-i 00 (N lO 01 CO 
0_0_'1*^CO_CO_CO_^ 

oo"co'"(n'~(m'"'1<"o' 

o ■* inioo 00 

t>. th CO oo_co eo^ 

co" T-T 



dOriJ 

(N_0_0_ 

00iO(N 
CO '-'^t^ 

o^co^oo" 



rt<00(Nt>. 
05 Oi 00 1-1 CO 
CO^CO^(N^-<1<_0_ 

cTo'io'od'iN'" 

10 CO 00 CO CO 
t^ 02 ■^ CO CO 



10 i-i «0 IN !>. (N 1> 

<N CO 10 t^ -* t^ 10 

rH_o^o_oq_ioco__(N_ 

i>rTtrTtr(:o~co"ccror 

OOOO-^COOICO 
CO •* ■* CO CO (N I> 



»0(NCDCO(N (N(NCO 



C0005000 00 
O CO t^ IN 00 00 
1-1 "O^rt^^O^Cl^CO^ 

oid~-*~co"-*"-*"cr 

Ttt CO 00 CO CO 05 
■>* (N f-H O^-^ 05 

CO 



O5-*00 
00__rH_O_ 
TjTcfGO" 

r>. 01 lO 

O CO Oj 



CO CO -^t^ CO 
i-< t>-000 1-1 
|> t^CO^i^l^*^ 

t^c<rcsr'-^'"co" 

CO O CO 00 CO 

0> t^ 05 ^'*, 
CO^i-TTiTc^fr-r 



•«*< 1-1 00 CO ""ti 00 03 
rH O IN 1-1 »0 10 CO 

"^■*_"*^'^_'^«"^'^_ 

CO'"l>~iN'"lN~CO~Crio" 
00 05 (N CO CO O CD 
CO CO 00 CO ■«* 05 o 




26 



THE DISTRIBUTION OF INCOME BY STATES 






Cm. So 



^; 






COCOOlCOVOlCi-IC^liC 

coiocooocoosoji— lO 

OJOCOrHfOOOOO 



(M05(NlM 

1-HOOOOO 



CO N >— I •— I 

■*CC05C0 

o >-< 10 ■* 



eoo50 05icooi^(N 

rHOlOOCOOOliOiO 
COCO00CD(N<dOI> 



COOOOi 
■rt< (N 10 



t-1 c 

a 






(M r^ C<l t- <-H 10 lO rt< rH (N !>• '— I '— I <:0 CO CO -rP 

<M-*0'-<'-iCO(NI>-CO •~;,'^„'^_"^_ "^*-^„'^^^^ 

T-rCO~CO~fO~i— TlO'-^^OO^lO" l-T©) 00 "-h" Tfl rH T-H 00 

OS O CC CC O 02 txM 00 »Ci(MOC<J CO 00 00 ^ 

CO (M 00 ■<* 00 O T-( CO QOO0a5I> CO CO CO t^ 



COOlCOOO^OSrHOO 

oo»ocoiccot>o^ 
tjh'co"— Tcc'cfo'cTtC 

r-(iOOOCO(MCOTf<CO 
(M^ CO^ T-H ,-1 



01^0 

t^CO (M 

oo^c^"^' 
10 CO lo 



O 3 - ID 



1-t (Ni-llMrHIN 



a a^ a ^ 

« o3 fi <U;*^ 






eg 

O Oi 
o3 „ 



t^»-H00O5O500'-HC<l'— I 
C<|kOiCrtiOi^'-*J>CO 






I i-H i-H T-H I— I T-H l-( I— I I— I CO 



<N05-^0500C01>'*0 (MiOlO»-i OlOlTtHOO 
Oi 00 00 (M ■* 00 CO 05 (N CKCO-^iO t--(NC0CO 
lvcOO0'<*i-*COTt<COTf< COCOCQCO CO-^iOUJ 



(N-*C550l00Ttit^O 

r-lOOOCOOCOi-llO 

iOcOI>COt}<cOiC00 



CD>-iO 

OOrH (M 

t^I>00 



fO'-iTHt^.-ifO->*iiMcO 
OCOl>00OiMlMC0I:^ 

o CO 10 '-•^i> '~1,'>l'^„"*» 
CO* oT t--r oT eo'~ Oi" co" lo" 00" 

(N'^COOCOIOOOOICO 

(M ■* ■>* co_'^'0^co__oq_o 



OiC* 00 

CO 00 1>- i-H 

CD__00__'-<_CO^ 

co^i^od'o*" 

I-H CO ■* C^i 

■^cocot^ 



■* O5CO00 
00 00(M 

Oiccccco 

10 CI (M CO 
t^t^O CO 



05CO(N050(NCOI^ 
00COO<NiOCOO5O 
00_00-*__CO_CO_^i-H_CO_-^_^ 

■*coa3cococo-*t> 

10 Tjl 1-H 05 CO CO Tt< 



<NiMNi-i .-Ht-hN-* 



1-H Oil-H 

(M OOCO 
CO__CO__00_ 

co^co^co" 

»O00(N 
CO__t^Tt<_ 

I-T co" 



H c o 



1-H 05 05 t^ CO CO 00 CO t^ Ot^COi-H 

Oi (N (N O (M 03 C2 »0 t>- 1— I CO (N 1>- 

10 lO CT> 1— I t^ to C0_05_'^__ CD_00__C\O_ 

co"crcD~crio"cr»o"i-rco'" co co o oi 

t>. o 00 a> ic 00 CO ■* o ■* 10 rH (N 

1-H 05 CO 05 CO 05 I> "-I ■* O50000CO 



Tfl rH IC lO 

!>•* 000 



O»Ot^C0t^00-*T-H 
C0C0O500O00(N05 
T-H__cO_(M_^'*_'-H^I>^CO_^l>_ 

i-ro~co"o~t^",-r(M'"io" 

OOCDiOO'^fMCOCO 
(M IM r-i CO fH (M C4 



CO(N (N 

0^cO_05_ 

co'co^oo" 

CD 100 

o 1000 






w ^ S pS 



THE RESULTS 



27 



W 
Eh 
< 

W 

CO 



t- p5 



O 

w 

o 
u 

I— I 
o 



CO 

>^ 
< 

;z; 



ni 


CI 




8 


H «, 








'o 




8 


(= 


"O! 1> 


O 


fc- J3 


O 






T-\ 



o oj 

q F 









(N (N ■^ir0>O(NC0 CO IQ fC-i .-H fo CO 



fo i-H c» i-H oi lO o (TO 00 T-H eo ic CO CD 
»o^oo (M 05 1> 03 oq_t>^T)^^ oq^oq^co^io^GC^ 

1-h" i-t t-Ti-Ti-t T-Ti-Tcfi-rT-r 



(N lO •* 00 t^ 00 l^ 

00 00 O >-< lO (N T-H 
Oi_C5 lO (M 'X' 05 ■* 

'-r(M'~,-rc<fc<r<N~c<f 



I> 1— I c£> CO CO 1— I 
CO lO (M O lOO 

oo__cq_ca^(>i^(M_^cD_ 

co~ccri>"crco'~r-r 

l>i-(cO<N C<J 



CO Tj< 1— I 

05 lO o 
03 lO !>• 



t^i-i O5 00 00 
1— I O CO I> I— I 
OO^^i-H^CO^C^^CD^^ 

co^co^o'c^Tcf 

CD t^COO iC 

"* coco coco 



lO iC Tfi O O CO lO 

O CD CO '^^ C5 Tj< O 

i>^o^ io^co__co__co__io 

COi> 'o"(M''QO'"':trar 
to CO O t^ CI CD 03 
CO CD CO T-H 1— I CO CO 



l^ CO IC 1-H CO lO 
(N (N t^O OOiO 
(M__>0 O 0_0_CO_ 

■*(M(NCO C^ 



05 o »o 
co'oi'c^'" 

05(NO 



lOCO r-l t-lO 

OC<>00rt< 05 
CD_^^__'-*_'<^__<N_ 

co'io^r^Tco^or 

lO O CO O) 00 



00 05 •* O IC r-H CO 

t^ CO O O lO (N 00 
•<#^'*__0,CO__CD__'*_(M_ 
OO^CO" CO" l^-T riT TjT lo" 
t^ i-H CO l> 1>(M CD 

l-H (M <M rH i-H 




28 



THE DISTRIBUTION OF INCOME BY STATES 



■g a « 
^ a fl 



<N(N(M(N (Ni-HCOOO 



Sag 

° o S 
fl fl o 
t^ -is bC 

«*• J. a 



o o 

sa 

> 



OOS O500-*(M00iO 00(NO500 (M 05 1^ O 
QOl>. THiOiC-rHCO^ <r>CD'<tiO CD <£i (M CO 
t^fO 1-H GO Tt< t> CO Oi OOiOSO »-hO(MO 



I>(NCOIO»OCOIOtJH 

coociioocot^io 

c<fT4~cf'-rco'~'-rco~ 



OCOIO 

CiT-H 00 

Tf< 00'^ 

c^Tt-Tco" 



SCO m 

" f5 a 

C! a o3 

.a >-< (B 

_ c3 3 



T)i,-i ^"^ooieoco t^wcoo 

lOO CO O --I »-i 05 1-1 CO <M Tfi Id 
(N COCOTt^ 



r-< coco-* 
CO Tf Ttl t^ 



co__oo_^co_^T-H_ 

t^-* (MOO 
(Ni-H-*oo 



l-HOl-HC^JlOrHl^O 

000--iTfcOiOO'-i 

i>ccrco"io"io"T-raro" 

05 (M CO CO CO ■<* i-l 



rHTjH,-! 

CO(N Ol 

ooo 

irfi-To" 

CO C3 T-H 
T-H Tt( 



a rt 



O00rt<(N05C0C0(Mi0 
^OO'tiCCCOOSCOO 
i-H^O^C^ (M_^C^_t^_^ C0_t>-_^0^ 

o"i>r co^t^^crcfo"-*" 

>— I -^ 00 00 CO 05 I— t lO 
tH IMi-HCO 



CO TtH Ol 1— I 

co_r^__o_T-H^ 

©"ofco^c^r 

i> lo >ol>- 



TfHCOl^CO 

O CO 00 CO 
CO^^-^^O^O^ 

c<rio"'-H'"cD" 

CO CO o> CO 

C<) 1-H r-l Tjl 



l>CO00TiHTtHlO(MCO 

l>0-^COTtH:^cDcO 

co^i-<__i--__C2_oq_a3^co__r-<_ 

i>-'"c<rio~orc3i"cric~co'" 



00 coo 
00 ot^ 

<N(M CD 




W ^ S Ph 



2 d £ 



THE RESULTS 



29 



C 

I— ( 
w. 

> 

I— ( 

o 

<: 
o 
I— I 

a 

o 
o 

o 
m 

o 
o 
"^ 

l-H 

o 



CO 

<5 






U OJ 



P ° § ^ 



s^ d.2 "-^ oi S 
^ 8 >.& 2-^ 



gX! o 03 O 






> O 



a; S 0< 



bCS 






o O ;3 
|1h & 



-1^ o3 
P CJ 
O 



(^ -2 



03 

Si 1=1 



li 

O O 



0) 

s ■^ 

c3 o 



P< O 



o 






O100C0O»OG0(MC0Ci(M 
OCO'rft.-HGOfO^r-llOi-l 



lO-^IXMcO 



t^TtHi:Ort<Ot«5-<*<i-tOOCO 






0«D 

coco 
CO lo 



^^i-HCOOCOTjHt^lOt^ 

O'-iQOCS^Ot^iOOOCiO 
?D_iq_CJ^(M_Tj<__C0__I~-._^O^'0^CD^ 

c<roo"'*"i-ro'co"cro''cfi-r 

ioioc<ioo>oi>cocooco 

(MCOTfHlD<r)Tti<MOOTfH 









(U g ^ QJ O g 



30 



THE DISTRIBUTION OF INCOME BY STATES 



CO 

{^ 

O 

t— I 
m 

> 

l-H 



< 
o 

l-H 

w 

O 
O 
W 

o 

W « 

O 

o 
u 
"^ 

I— ( 

o 



9 



'^ SJ 



9^ a3 



fl i=i 9 

Ph^ bC 



o '^ 



bC'" 



3 OD DO 

'^ e B 

c S g 

^ 03 3 

03'" O 
-►^ «*- -G 

H 



0) <P 



03 



a. 

c3 



O 



i-rT-Ti-Tr-recfi-r i-ri-H~cf 



o 00 (M o_03_<:o_'0_oq_r>-_'-H_ 

.-ri-rTti''oo'~o'~-*"c<ri>rTti~(;£r 

>O00«5(N(MiO<M(M00O 

00 '-H o '-l^^"^„o_i>^cc o 

o~ (N"c<fr-rr-ri-r 



<r>co-*-*i>i>oooo'X) 
co" T-Ti-Ti— T'h" 



=5 S 






5 s^ d as 






CO S b| S O § 



LIBRARY OF CONGRESS 



013 779 105 5 • 



